B-130824, MAR. 1, 1957

B-130824: Mar 1, 1957

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UNITED STATES ATOMIC ENERGY COMMISSION: REFERENCE IS MADE TO YOUR UNDATED LETTER WHICH WAS RECEIVED ON FEBRUARY 25. BIDS WERE REQUESTED FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK REQUIRED FOR THE INTERIOR PAINTING OF CERTAIN HOUSING UNITS AT THE HANFORD WORKS. THE TOTAL OF WHICH IS $174. YOU STATE THAT SEVENTEEN OTHER BIDS ON COMBINATIONS NOS. 1 AND 2 WERE RECEIVED RANGING FROM $207. THAT THE GOVERNMENT'S FAIR COST ESTIMATE FOR THIS WORK WAS $292. OLSON WAS INFORMED AS TO THE AMOUNTS OF THE FAIR COST ESTIMATE AND THE FOUR LOW BIDS. IT IS ALSO STATED THAT ON FEBRUARY 14. ANDERSON STATED THAT THE ERROR MADE WAS IN ASSUMING THAT BASEBOARDS. THAT THE CORPORATION HAD ERRONEOUSLY ASSUMED THAT CONDITIONS AT THIS SITE WERE SIMILAR TO THOSE EXISTING AT OTHER SITES WHERE IT HAD DONE WORK OF THIS NATURE.

B-130824, MAR. 1, 1957

TO MR. J. I. THOMAS, CONTRACTING OFFICER, HANFORD OPERATIONS OFFICE, UNITED STATES ATOMIC ENERGY COMMISSION:

REFERENCE IS MADE TO YOUR UNDATED LETTER WHICH WAS RECEIVED ON FEBRUARY 25, 1957, WITH ENCLOSURES, REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN CONCERNING AN ERROR WHICH ANDERSON BROTHERS, INC., DENVER, COLORADO, ALLEGES IT MADE IN ITS BID OPENED ON FEBRUARY 12, 1957.

BY INVITATION NO. AT/45-1/-1174, BIDS WERE REQUESTED FOR FURNISHING LABOR AND MATERIALS AND PERFORMING ALL WORK REQUIRED FOR THE INTERIOR PAINTING OF CERTAIN HOUSING UNITS AT THE HANFORD WORKS, RICHLAND, WASHINGTON. RESPONSE, ANDERSON BROTHERS, INC., SUBMITTED A BID DATED FEBRUARY 12, 1957, OFFERING TO PERFORM THE WORK FOR THE VARIOUS UNIT PRICES SET FORTH OPPOSITE EACH ITEM OF COMBINATIONS NOS. 1 AND 2, THE TOTAL OF WHICH IS $174,112.

YOU STATE THAT SEVENTEEN OTHER BIDS ON COMBINATIONS NOS. 1 AND 2 WERE RECEIVED RANGING FROM $207,883.40 TO $430,852; THAT THE GOVERNMENT'S FAIR COST ESTIMATE FOR THIS WORK WAS $292,988.60; THAT ON FEBRUARY 13, 1957, MR. OLSON OF ANDERSON BROTHERS, INC., TELEPHONED FROM DENVER, COLORADO, TO ASCERTAIN THE RESULT OF THE BIDDING AND MR. OLSON WAS INFORMED AS TO THE AMOUNTS OF THE FAIR COST ESTIMATE AND THE FOUR LOW BIDS. IT IS ALSO STATED THAT ON FEBRUARY 14, 1957, MR. OLSON AND MR. ANDERSON VISITED THE PROJECT; THAT MR. ANDERSON STATED THAT THE EXTREME GAP BETWEEN THE CORPORATION'S BID AND THE FAIR COST ESTIMATE INDICATED TO HIM THAT A GROSS ERROR EXISTED SOMEWHERE BUT THAT IN CHECKING HIS BID ESTIMATES HE HAD SO FAR BEEN UNABLE TO FIND IT; AND THAT AFTER INSPECTING THE HOUSES TO BE PAINTED, MR. ANDERSON STATED THAT THE ERROR MADE WAS IN ASSUMING THAT BASEBOARDS, QUARTER ROUNDS AND DOOR AND WINDOW CASINGS WOULD BE PAINTED WITH RUBBER BASE PAINT AND THAT, THEREFORE, NO ALLOWANCE HAD BEEN MADE IN HIS ESTIMATE FOR SEPARATE PAINT SET-UP FOR THE ENAMEL WORK OR THE ALTERNATE OF APPLYING SEVERAL COATS OF RUBBER BASE PAINT WHICH WOULD BE REQUIRED TO COVER THE EXISTING ENAMEL.

IN A CONFIRMING LETTER DATED FEBRUARY 15, 1957, THE CORPORATION STATED THAT ONE OF ITS REPRESENTATIVES HAD ATTEMPTED TO VISIT THE PROJECT TO INSPECT THE HOUSES BEFORE THE SUBMISSION OF THE BID BUT THAT AFTER STARTING HIS TRIP, HE HAD TO RETURN TO HIS HOME BECAUSE OF ILLNESS; AND THAT THE CORPORATION HAD ERRONEOUSLY ASSUMED THAT CONDITIONS AT THIS SITE WERE SIMILAR TO THOSE EXISTING AT OTHER SITES WHERE IT HAD DONE WORK OF THIS NATURE. THE CORPORATION REQUESTED THAT IT BE PERMITTED TO WITHDRAW ITS BID ON THE PROJECT.

ON THE RECORD, THERE IS NO ROOM FOR REASONABLE DOUBT THAT THE CORPORATION MADE AN ERROR IN ITS BID, AS ALLEGED. ACCORDINGLY, SINCE THE ERROR WAS ALLEGED AND EXPLAINED PRIOR TO AWARD THE BID OF ANDERSON BROTHERS, INC., MAY BE DISREGARDED IN MAKING THE AWARD.